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15 Days Price Change

Hero Fincorp Unlisted Share

₹2050 0 | 0%

Market Cap ₹ 26098Cr.

Current Price ₹ 2050

Lot Size 25

52W High ₹ 2050

EPS 50.04

P/B 4.5

Face Value 10

Debt to Equity 6.21

Stock P/E 41

Book Value ₹ 453.4

Company

52W Low ₹ 1230

Demat Account Both

ISIN INE957N01016

Valuation

No. of Shares 12.73Cr.

Hero Fincorp Unlisted Share Price

| |

Price

Overview Inc. Year: 1991Industry: Finance - NBFC

Incorporated in December 1991, Hero FinCorp is an Indian Non-Banking Financial Company (NBFC). Hero FinCorp (incorporation name Hero Honda FinLease Ltd.) is engaged in businesses such as leasing, financing, bill discounting, and more. The company is involved in consumer finance businesses and commercial lending. They offer retail loans, corporate loans, and loyalty loans like two-wheeler, personal, used car, commercial loans, loans against properties, unsecured business loans, medical equipment financing, working capital loans, inventory funding, and so on. The company is present at 2000 retail touch-points across India and has partnered with over 2000 satisfied corporate clients to give hassle-free services to its clients. Hero FinCorp Limited has a subsidiary known as Hero Housing Finance Limited, The company focuses on end-to-end digital lending to enable a joyful home ownership experience for their customers.

Hero Fincorp Limited's Unlisted Share Price are updated on our website on a daily basis, to stay updated with the share price you can visit our website every two days or register with us to get daily updates on WhatsApp.

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Research & News

Discussion Board

Net Sales (in cr.)

Total Income (in cr.)

Operating Profit (in cr.)

Net Profit (in cr.)

Shareholder Funds (in cr.)

Total Assets (in cr.)

Financial Data (in cr.)

FY20 FY21 FY22 FY23 FY24 YOY % FY24 CAGR % FY24
Net Sales 3799.9 4278.1 4738.7 6401.6 8290.9 29.5 21.5
Total Income 3855.2 4333.5 4797.7 6447.6 8359.7 29.7 21.3
Net Profit 278 51.6 -191.9 480 637.1 32.7 23
Shareholder Funds 4471.3 4967.8 4770 5247.8 5772 10 6.6
Total Assets 27199.1 29996 34399.1 43451.2 53204.7 22.4 18.3
EPS 21.84 4.05 -15.07 37.7 50.04 32.7

Financial Docs

Type Period/Date Document
Quarterly Report 2022-03
Annual Report 2022-03
Annual Report 2021-03
Annual Report 2020-03
Annual Report 2019-03
Annual Report 2018-03

Hero Fincorp Investment Thesis

Industry Overview:

The NBFC segment in the Banking and Financial Services sector plays an immense role in the economy due to their diversity and reach to middle income households. As per RBI, as of March 2021, the total asset worth of NBFCs was 54 lakh crores which together forms up the 25% of the total assets held up in the entire banking sector in India. Past data suggests that the sector has grown with an average growth rate of 18% approx. for the last five years. This fact release from RBI multifolds the importance of such NBFC companies and improves their future forecast of being into the business.

Company Overview:

Hero FinCorp is a Non-Banking Financial Company (NBFC) started in December 1991 under the leadership of Late Sh. Brijmohan Lall Munjal, a group founder. It was formerly known as Hero Honda FinLease Ltd. and since July 2011,operates under the name of Hero Fincorp Ltd. The company is primarily engaged in disbursement of “hassle-free” corporate and retail loans at competitive rates. It has subsidiaries such as Hero Housing Finance Ltd. which help satisfy one of the basic needs of an individual i.e., House. The journey of Hero Fincorp Ltd, since incorporation has been quite impressive from getting an equity of 106 crores in Feb 2013 to crossing happy 5 million plus customers in 2020.
The vision of the company is to become a behemoth of financial services on which individuals can rely on and can get credit easily. On the other hand, the mission includes being transparent in its process which would help individuals to trust their loan partner.

 

Business Segment:

 

Hero Fincorp primarily operates in India. The corporate office and operations center is located in New Delhi. It operates through dealers across India based on the specified loan portfolio. The network of dealers is spread across all states and UT giving an edge to know its target audience locally.
The business model of Hero Fincorp is to provide the individuals with loans at competitive and affordable interest rates in one click with minimum paperwork involved. The NPAs of such business models are generally less than that of commercial banks due to involvement of lower amount loans.

The product portfolio of Hero Fincorp Ltd. is shown above. It can be broadly classified into two categories i.e., Retail and Corporate Loan which is further divided into category wise. Besides, it is also engaged in providing instant digital cash instant loan and home loan. The diversified product portfolio enables the Inc. to reach various segments of the consumer, especially, in the middle income category.

Loan Assets Mix (%. INR Crores)
Loan Assets Mix

Shareholding Pattern:

Holding Mar'21 Mar'20 Mar'19 Mar'18 Mar'17
Promoters 10,12,56,432 10,12,56,432 9,12,03,151 7,78,25,729 7,20,52,024
Non-Promoters 2,60,50,242 2,60,50,242 2,29,93,770 2,06,19,892 2,06,27,692

Source: Annual Reports

Category-wise Shareholding Distribution (FY20)
Category-wise Shareholding Distribution (FY20)
Source: Annual Reports

Shareholding Pattern %

The shareholding pattern of Promoters spiked from 7.2 cr shares to 10.1 cr shares. On the other hand, the shareholding of non-promoters also increased from 2.06 cr shares to 2.60 cr shares in the span of 5 years. The graph portrayed above is a glimpse of the percentage of shareholding of promoters since 2017. The overall trend remained positive and constant for the past two years. The increasing shareholding figure indicates increased trust of the promoters in the business and helps to gain investors confidence in the business.

Peer Comparison:

NBFC being a competitive segment to operate, there exists strong competitive players well established in the market. Some of the major peers are listed below:

  1. Tata Capital Financial Services Limited

  2. Aditya Birla Finance Limited.

  3. Adani Capital Private Limited.

  4. Cholamandalam Investment & Finance Company Ltd.

The key players listed above possess a diversified range of business under their parent company. The basic peer to peer comparison is shown below:

Return on Equity %

Company FY21 FY20
Hero Fincorp Ltd. 1.70% 8.60%
Cholamandalam Investment & Finance Company Ltd. 16.90% 15.20%
Adani Capital Private Ltd. 4.80% 0.60%
Tata Capital Financial Services Ltd. 10.50% 2.40%

Gross NPA %

Company FY21 FY20
Hero Fincorp Ltd. 7.40% 6.50%
Cholamandalam Investment & Finance Company Ltd. 4.00% 3.80%
Adani Capital Private Ltd. 1.40% 0.50%
Tata Capital Financial Services Ltd. 3.00% 2.40%

Capital Adequacy Ratio %

Company FY21
Hero Fincorp Ltd. 19.70%
Cholamandalam Investment & Finance Company Ltd. 19.10%
Adani Capital Private Ltd. 25.81%
Tata Capital Financial Services Ltd. 20.29%
Aditya Birla Finance Ltd. 22.80%

Cost to Income Ratio %

Company FY21
Hero Fincorp Ltd 41.40%
Adani Capital Private Ltd. 73.00%
Aditya Birla Finance Ltd. 31.20%

Return On Asset %

Company FY21 FY20
Hero Fincorp Ltd. 0.30% 1.40%
Cholamandalam Investment & Finance Company Ltd. 3.00% 2.70%
Adani Capital Private Ltd. 1.50% 0.20%
Tata Capital Financial Services Ltd. 1.60% 0.30%

Financials

Balance Sheet:
Consolidated Balance Sheet (All amounts are in Rupees Crores except share data and unless otherwise stated)

Particulars 31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18
Assets        
Financial Assets        
Cash and cash equivalents 1106.87 2343.94 106.68 0.69
Bank balance other than cash and cash equivalents 116.13 0.52 0.55 0.48
Trade receivables 7.98 7.87 4.34 5.78
Loans 26194.69 24263.09 19771.2 13158.06
Investments 1917.24 78.84 811.98 53.72
Other financial assets 113.11 32.74 51.62 41.2
Non-financial assets        
Current tax assets (net) 42.43 40.84 16.39 10.12
Deferred tax assets (net) 341.04 254.55 176.63 123.14
Property, plant and equipment 53.05 72.27 82.08 96.26
Right-of-use assets 40.15 56.9 - -
Capital Work in progress - 0.04 - -
Intangible assets 22.54 19.32 21.69 14.49
Intangible assets under development 0.62 0.61 0.16 -
Other non-financial assets 40.18 27.6 25.41 18.61
Total assets 29996.03 27199.13 21068.73 13522.55
Liabilities and equity        
Liabilities        
Financial liabilities        
Trade payables        
Total outstanding dues of micro enterprises and small enterprises; and 0.88 1.3 0.02 0.08
Total outstanding dues of creditors other than micro enterprises and small enterprises 256.79 167.36 119.58 72.77
Debt securities 4235.94 5253.94 6852.95 5672.09
Borrowings (other than debt securities) 19156.51 16130.76 9334.69 4813.65
Subordinated liabilities 642.91 573.06 448.78 300
Lease liabilities 44.37 59.02    
Other financial liabilities 595.58 405.62 569.42 359.51
Non-financial liabilities        
Current tax liabilities (net) 8.6 60.14 33.53 14.87
Provisions 41.69 34.31 24.05 14.9
Other non-financial liabilities 45 42.28 33.85 26.23
Total liabilities 25028.27 22727.79 17426.87 11274.1
Equity        
Equity share capital 127.31 121.54 114.15 98.45
Other equity 4840.45 4349.8 3527.71 2150
Total equity 4967.76 4471.34 3641.86 2248.45
Total liabilities and equity 29996.03 27199.13 21068.73 13522.55

Income Statement:
Consolidated Statement of Profit and Loss (All amounts are in Rupees Crore except share data and unless otherwise stated)

 

Particulars 31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18
Income        
Revenue from operations        
Interest income 3877.79 3417.56 2247.51 1533.88
Dividend income 0.74 0.74 0.5 0.01
Profit on sale of investments 23.94 58.16 47.28 3.64
Rental income 5.84 10.89 17.48 22.85
Net gain on fair value changes 22.66 - 2.63 3.19
Insurance commission 13.17 11.09 0.48 -
Others charges 333.94 301.42 202.59 130.94
Total revenue from operations 4278.08 3799.86 2518.47 1694.51
Other income 55.44 55.32 - -
Total income 4333.52 3855.18 2518.47 -
Expenses        
Finance costs 1710.31 1629.22 1124.71 683.66
Impairment allowance on loans 1417.74 649.86 174.3 136.15
Employee benefits expenses 285.61 302.76 237.55 147.61
Depreciation and amortization 35.21 36.33 24.88 26.52
Other expenses 813.58 788.22 566.19 488.21
Total expenses 4262.45 3406.39 2127.63 1482.15
Profit before tax 71.07 448.79 391.04 212.36
Tax expense:        
(i) Current tax 109.15 248.48 198.05 125.44
(ii) Tax adjustment relating to earlier year -3.17 -0.12 - -3.25
(iii) Deferred tax (credit) (net) -86.53 -77.6 -52.76 -52.76
Total tax expense 19.45 170.76 145.29 69.43
Profit after tax 51.62 278.03 245.75 142.93
Other comprehensive income/ (loss)        
Items that will not be reclassified to profit or loss :        
Remeasurement of (losses) on defined benefit plans -0.12 -1.05 -2.09 -0.74
Income tax impact on above -0.04 0.32 0.73 0.26
Other comprehensive income/ (loss) for the year, net of tax -0.16 -0.73 -1.36 -0.48
Total comprehensive income/ (loss) for the year, net of tax 51.46 277.3 244.39 142.45
Earnings per equity share        
Profit for the year attributable to        
Equity Shareholder of Parent 51.62 278.03 245.75 142.93
Total Comprehensive Income of the year, net of tax        
Equity Shareholder of Parent 51.46 277.3 244.39 142.45
Earnings per equity share        
Equity Shareholder of Parent for the year        
Basic (Rs.) 4.23 24.18 23.78 15.32
Diluted (Rs.) 4.22 24.01 23.73 15.3

 

News & Announcements:

  1. As per the latest press release by Hero Fincorp, a corpus of INR 2000 crores has been raised of Growth Capital from Apollo, Hero Motocorp and other entities. This fundraise would help the company to work upon diversification of its product portfolio across multiple segments.

  2. On July 20, 2018, a corrigendum was issued by the company. As per the corrigendum, rights issue was made for a total amount of INR 11,81,34,75,000 to the existing shareholders.

  3. It became the first and foremost company which raised a Secured Overnight Financing Rate abbreviated as SOFR by raising a corpus of INR 2631 crores approximately at 168 basis point higher than SOFR.

  4. The NBFC aims to serve more than 15 million customers by the end of fiscal year 2025.

  5. Out of the fresh fund raise, Hero Motocorp is expected to invest about 700 crores in its financial arm Hero Fincorp.

Future vision insights of Jt. MD & CEO, Abhimanyu Munjal: “This fresh capital infusion will fuel our growth to USD 10 Billion in Assets, and enable us to serve over 15 Million customers by FY-25. This is in keeping with our mission of Empowering Every Indian’s Dream of Upward Mobility. I am excited to partner with Apollo in this journey as they bring significant experience and relevant domain knowledge; and I am sure this strategic partnership would be mutually beneficial to both groups.”

Valuation:

  • Hero Housing Finance Ltd, a housing arm of Hero Fincorp Ltd, currently holds assets under management (AUM) of INR 2369.20 crores in the FY 2020-21 from INR 1793.06 crores in the FY 2019-20.

  • The total loan disbursements stood at Rs.13822 cr. in FY21 from Rs.17829 cr. in FY20. This primarily owed to the impact of Covid-19 and nationwide lockdown across the country.

  • The loan assets reported in FY21 were Rs.25121 cr. against Rs. 23389 cr in FY20.

  • It has enabled a strong revenue of 4045.93 crores in FY 2020-21, a growth of 10.44% from the previous financial year 2019-20.

  • The loan asset mix percentage has increased in the retail segment as compared to other categories from 31% in FY’17 to 56% in FY’21.This indicates a strong rural and urban demand and forms a major share of its customer base.

  • The profit after tax has increased over the years. However, spread of Covid-19 across the globe has hit the operations which is indicative from PAT figures in FY '21.

  • It aims to grow USD 10 Billion in Assets.

  • The disbursement of loans has seen a sharp increase since FY ‘17. It increased from 6735 crores to 17,829 crores in FY ‘20 and then decreased to 13822 crores in FY ‘21 primarily due to suppressed demand and income effect in the pandemic. The business cycle fluctuation during this suppressed time hit the operations and the effect of which can be witnessed on the financials.

  • The capital adequacy ratio is consistently above the threshold of RBI guidelines, which is an add-on to the business.

Key Parameters:

Particulars FY21 FY20 FY19 FY18
Gross NPA to Loan Assets 7.40% 6.50% 4.50% 4.10%
Credit Cost to Average Assets 5.60% 2.80% 1.00% 2.00%
Profit After Tax (In Crores) 70.6 310.2 268.4 145.8
Debt to Equity Ratio 4.3 4.5 4.5 4.8
Capital Adequacy ratio % 19.7 19.6 19.2 18.7
EPS 5.8 27 26 15.6
Credit Cost to Avg. Asset 5.6 2.8 1 2
Cost of Borrowing % 7.8 8.5 8.3 8
Opex to Average Asset % 4.2 4.6 4.7 5.2

Sources:

  1. https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1135#:~:text=As%20on%20March%2031%2C%202021,size%20of%20the%20banking%20sector.

  2. https://rbi.org.in/Scripts/BS_NBFCList.aspx

  3. https://economictimes.indiatimes.com/industry/banking/finance/banking/hero-fincorp-first-indian-company-to-secure-new-benchmark-loan/articleshow/89491126.cms

  4. https://www.icra.in/Rationale/ShowRationaleReport?Id=110997#:~:text=TCFSL's%20capitalisation%20has%20been%20supported,as%20on%20March%2031%2C%202021.

Hero Fincorp Unlisted Shares: FAQs

1. Is trading in Hero Fincorp Limited's unlisted shares legal in India?

Yes trading in unlisted shares is undoubtedly legal in India. The trading takes place in the over-the-counter market through various platforms like Sharescart.com.

2. Is unlisted shares regulated by SEBI?

No, SEBI does not regulate the unlisted share market but certain rules and regulations of SEBI are applicable in the unlisted market space as well, such as, the DP charges for each transaction, stamp duty, lock-in period and more.

3. Where can I get the best Hero Fincorp Limited unlisted share price?

You will get the best price for Hero Fincorp Limited and a hassle-free buying experience only on Sharescart.com platform.

4. How can I buy Hero Fincorp Limited's unlisted shares?

Hero Fincorp Limited's unlisted shares can be easily purchased at Sharescart.com by following a few easy steps. Given below are the steps involved in the buying of these shares:

Step 1 - Confirmation on the number of shares you want to purchase of Hero Fincorp Limited at a trading price.

Step 2 - Submission of the necessary document like your Client Master Report. Certain additional documents will also be asked for by our representative if required such as a cancelled cheque and your PAN Card if you are paying from a secondary bank account which is not mentioned in your CMR.

Step 3 - The Sharescart.com representative will share the account details so that you can transfer the trade amount into the account.

Step 4 - The shares of Hero Fincorp Limited will reflect in your Demat account within 24 hours as soon as the payment is received and depending on the holidays. Our details would be available to you before the transfer.

5. How can I sell Hero Fincorp Limited unlisted shares?

Hero Fincorp Limited's unlisted shares can be easily sold at Sharescart.com by following a few easy steps. Given below are the steps involved in the of selling of these shares:

Step 1- Confirmation on the number of shares you want to sell of Hero Fincorp Limited and at what price you want to sell.

Step 2- At Sharescart, we will find a suitable buyer for you according to your requirements and if you accept the trade we will move on to the transfer and the payment aspect of the trade.

Step 3- The Sharescart representative will provide you with the Demat account details to transfer your Hero Fincorp Limited shares. They will also notify you about the additional details required from your end before the transfer of shares such as client master copy, delivery instruction slip, and more.

Step 4- Once the transfer is complete, the payment would be credited to your bank account within 24 hours, depending on the holidays.

6. What is the minimum ticket size for investment in Hero Fincorp Limited unlisted shares?

Over the years the minimum ticket size for investment has dropped as more and more people have started investing in the Unlisted market. Currently, the minimum ticket size for Hero Fincorp Limited is between 30K to 50K.

7. How to check if Hero Fincorp Limited shares are credited to my account?

Brokers or dealers provide you with a trading facility means you can buy and sell shares with your broker but when you buy shares the Depository holds your shares. There are mainly two depositories NSDL and CDSL.

If you want to check your shares in NSDL and CDSL you need to download the application (NSDL Speede App or CDSL myeasi).

  • You need to download the Application.
  • Login or Register yourself.
  • Fill in your DP Id and Client Id (NSDL DP Id starts with IN and CDSL DP & Client Id in numeric).
  • After registration, log on to your account and go to Dashboard.
  • You can see all your holding (Listed, Unlisted, Mutual Fund) there.

8. What will be the tax bearing on Hero Fincorp Limited?

The taxation on the Hero Fincorp Limited shares may vary depending on 2 Factors:

  • Short-term capital or long-term capital.
  • Pre-IPO stage (unlisted shares) or Post-IPO stage (listed shares)

Short-term capital

Unlisted shares - In unlisted shares, the taxation of short-term capital gain i.e. less than 24 months is taxable according to the investor's income tax slab.

Listed Shares - In listed shares, the taxation for short-term capital gains i.e. less than 12 months is at 15%

Long-term capital

Unlisted shares - The taxation for long-term capital gain i.e. more than 24 months is taxable at 20% with indexation benefits.

Listed Shares - The taxation for long-term capital gains i.e. more than 12 months is at 10% after an exemption of 1 lakh. There are no indexation benefits in listed shares.

9. What is the lock-in period of Hero Fincorp Limited shares?

According to the current rule issued by SEBI last year in August 2021, the lock-in period is brought down from 1 year to 6 months. This was done to entice more investors to invest their money in pre-IPO companies and startups. The lock-in period of Hero Fincorp Limited varies depending on which type of investor you are:

  • Foreign Venture Capital Investor - These investors have a lock-in period of 6 months from the procurement date of Hero Fincorp Limited shares.
  • Alternative Investment Funds II - These investors don't have to serve any lock-in period.
  • Other investors - These investors include body corporate, retail, high net-worth individuals. The lock-in period for them is 6 months from the date of listing of Hero Fincorp Limited enlisted shares.

10. How to check Hero Fincorp Limited unlisted share price daily?

You can check daily share prices of companies on our website or register with us using your phone number where you will get daily whatsapp updates on company news and other essential informations.

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